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The Capital Markets Authority has joined a Global Financial Innovation Network, an international network of 29 financial services regulatorsand related organisations, committed to supporting financial innovation.
GFIN seeks to provide a
more efficient way for innovative firms to interact with regulators, helping
them navigate between countries as they look to scale new ideas. This includes
a pilot for firms wishing to test innovative products, services or
business models across more than one jurisdiction.
It also aims to create a
new framework for co-operation between financial services regulators on
innovation-related topics, gaining insights and sharing different experiences,
lessons and approaches.
CMA’s Chief Executive Paul
Muthaura, while confirming the new development, says the move adds impetus to
the efforts to support innovation in the capital markets, noting the important
role of financial technology as a key enabler of performance excellence under
the 10-year Kenya Capital Market Masterplan, 2014-2023.
‘’…to this end, the Authority’s Regulatory
Sandbox, expected to be launched by March 2019, is intended to accelerate our
understanding of relevant emerging technologies and support evidence-based
approaches to regulation that advance the goals of investor protection and
capital markets deepening, in line with the objectives of the Capital Market
Master Plan,’’ he said.
Mr
Muthaura added that CMA has been at the forefront of implementing initiatives
to stimulate and support the responsible growth of fintech and innovation
within Kenya’s capital markets.
In line with its
facilitative role, CMA consistently seeks to provide a conducive regulatory
environment for the deployment of new and innovative fintech and business
models that have the potential to deepen capital markets in Kenya.
In line
with the goal of open and proactive inter-regulatory engagement, Mr Muthaura,
observed CMA has already entered MOUs with two members of GFIN; the Australian
Securities and Investments Commission and the Financial Services Regulatory
Authority of Abu Dhabi Global Market.
Mr
Muthaura noted that CMA, being cognizant of the fundamental role of fintech
within the financial services sector, aligned its 2018-2023 Strategic Plan to
respond to the changing technological landscape by setting one of its key
objectives as leveraging technology to drive the capital markets value chain.
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